Bitcoin Analysis 2021 - Should You Invest?

Bitcoin hit $37,000 today (up to $39,500 since filming) but is Bitcoin a good investment? A completely neutral Bitcoin analysis covering the risks and potential rewards of investing in BTC.

The Positive:

Bitcoin is well positioned for a currency collapse. We don't really know where this money printing and endless debt will lead us, but if we do experience currency devaluation or collapse Bitcoin is readily available to help conduct transactions digitally. Countries like Venezuela, who have already experienced hyperinflation have seen increasing use of Crypto, and Venezuela is just about to switch to 100% digital currency. Despite a National digital currency ( the Petro), many citizens continue to trust Bitcoin more than they do the national options. And that's the problem with currency collapse, it's hard to get people back into the system if they already have a better option. This could be huge if we see a currency collapse or a major drop.
2. Millennials prefer BTC as a store of wealth over gold. We have also seen investor groups moving from gold into Bitcoin. You have to remember investing isn't about what you want to happen, it's about what is happening. So to just shrug off the meteoric rise, and demographic changes relating to Bitcoin can be dangerous.
3. Institutional investors. Investment groups are finding it harder to ignore Bitcoin, especially with triple digit returns. Almost 300% returns last year alone. This served to both drive up the price of Bitcoin, as well as add an additional veneer of credibility to crypto as a whole. If Bitcoin keeps going up, we are likely to see more mainstream adoption by institutional investors, as well as the general public. Most people at this point still do not hold Bitcoin, and most people have basically shrugged it off as a passing fad. This is becoming increasingly hard to do as it has essentially beaten almost all of the alternatives for ROI.
4. Potential Upside of Bitcoin. Gold market cap is around 9 trillion. If we see mainstream adoption of Bitcoin by the general public to the extent of gold, that would value an individual Bitcoin at around the $500,000 mark. So while today $34,000 might seem like a lot, it wasn't long ago that people thought you were crazy investing $1,000 for one Bitcoin. And for people new to Bitcoin, you dont have to buy an entire coin, you can buy smaller fractions, called Satoshis, you can invest as little or as much as you like.
5. The practical applications of Bitcoin, and a driving reason behind the creation of it in the first place. A decentralized digital currency frees the general population from the manipulative practices of governments, the fed, and big banks. Bitcoin has often been called " the people's money" by analysts which is why I find it strange the gold and silver stackers, who don't like big government, have mostly ignored Bitcoin despite this obvious benefit. This is the most compelling reason I think to be bullish for Bitcoin. There is increasing mistrust of governments and their financial manipulation, increasing erosion of confidence in paper money, an untenable debt load, and ongoing cronyism. Also, if you are a proponent of cyclical theory, both societal and financial, we are due for major corrections on multiple fronts. Bitcoin is nicely position for that paradigm shift, although that could change.
The Negatives:
1. it is impossible to value Bitcoin. Any price increases are only tied to the willingness of someone else in the future buying my Bitcoin for a higher price. Always need buyers who are willing to pay more than what you paid. No real underlying value. And this is the biggest beef of Bitcoin bulls in general and they aren't wrong. Now frankly the same can be said for gold, while gold does have some practical value most of it ties back to investor sentiment. This reliance of new buyers propping up the market is why we hear the Ponzi analogy. Now there are arguments as to why Bitcoin is not following a typical Ponzi route that we won't cover here, but I do openly accept the criticism that future gains are tied to new buyers coming on board. If we see a reversal in bullish sentiment, we could see another crash like we did in 2017/2018.
2. Increasing pressure from the SEC. Recently Ripple XRP was charged by the SEC for conducting 1.3 billion in unregistered securities offerings. XRP is a cryptocurrency similar to Bitcoin, I think in third of fourth place overall, but with a major difference - it is not decentralized and is controlled by the corporate entity, Ripple. The same lawsuit could not be launched against Bitcoin because nobody controls or owns it, but the increasing scrutiny by the government on Crypto's may ultimately exert downward pressure on mainstream adoption. And while its unlikely the government could outlaw Crypto, they did outlaw gold ownership not that long ago. SORRY OUT OF ROOM! SEE THE VIDEO FOR BITCOIN ANALYSIS 2021
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